Effects of Credit ‘Plus’ on Poverty Reduction in Ghana

Bukari, Chei; Peprah, James Atta; Ayifah, Rebecca Nana Yaa; Annim, Samuel Kobina

doi:10.1080/00220388.2020.1797689

Cited by 18 publications

(14 citation statements)

References 43 publications

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“…Thus, where obtaining all three products are constrained, credit accessed with the farmers' savings improves farm productivity than the combination of any other two financial indicators. This is generally consistent with the study by Bukari et al (2020) which found that the combination of financial products, which they call financial bundle is vital in influencing household outcomes such as poverty.…”

Section: Conclusion and Recommendationssupporting

confidence: 90%

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Peprah

Koomson

Sebu

et al. 2020

AFR

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PurposeDoes financial inclusion matter for productivity among smallholder farmers? The authors answer this question by using the sixth and seventh rounds of the Ghana Living Standard Survey to examine the extent to which financial inclusion affects productivity among smallholder farmers in Ghana.Design/methodology/approachThe study uses a pooled data of the 6th and 7th rounds of the Ghana Living Standard Survey which are national representative data. The authors model an Instrumental Variable (IV) to correct for endogeneity in financial inclusion and a dominance analysis to examine the effects of access to credit, ownership of savings account and insurance product on farmers' productivity.FindingsResults from the study indicate that financial inclusion significantly enhances productivity. Moreover, credit, savings and insurance products influence productivity at various degrees. Thus, expanding the scope of financial services (access to credit, savings and insurance) among smallholder farmers is crucial for inclusive finance and sustainable agricultural production.Practical implicationsThe findings of the study have implications for financial institutions in the design of financial products that the meet the needs of smallholder farmers.Originality/valueSeveral studies have looked at how access to credit influences agricultural productivity in Africa. However, in recent times financial inclusion has been advocated for because it goes beyond mere access to credit. This paper to the best of our knowledge is the first of its kind to examine how financial inclusion could affect agricultural productivity in Ghana.

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Section: Conclusion and Recommendationssupporting

confidence: 90%

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Peprah

Koomson

Sebu

et al. 2020

AFR

Self Cite

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“…The Lewbel (2012) 2SLS approach does not require any exclusion restriction to be satistfied, rather, it utilizes internally generated instruments based on a heteroskedastic covariance restrictions. The Lewbel (2012) 2SLS framework has been widely used in extant literature as a robustness check on findings with external instruments or when there are virtually no external instruments altogether (Bukari et al, 2020;Churchill & Marisetty, 2019;Churchill et al, 2020;Koomson et al, 2020). A key precondition for identification in the Lewbel (2012) framework is the presence of heteroskedasticity, which we confirm exist based on our Pagan-Hall and Breush and Pagan (1979) tests.…”

Section: Empirical Model Specification and Estimation Strategysupporting

confidence: 76%

Effect of COVID-19 on Household Food Insecurity and Poverty: Evidence from Ghana

et al. 2021

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Following the outbreak of COVID-19 and its heavy toll on the global community and humanity, a fierce debate on the pandemic and Sustainable Development Goals (SDGs) performance nexus has emerged. While the literature on this subject remains highly contested, evidence within the Ghanaian contest is sparse. Thus, we present micro-level evidence on how COVID-19 poses a threat to hunger and poverty as SDGs in Ghana. Precisely, we examined the effect of COVID-19 on households' food insecurity and poverty and further analysed gender and locational sub-samples for differential effects. Data on 3905 households were obtained via concurrent online survey and telephone interviews. The results indicate that, on several occasions, a significant number of the sampled households (57.76%) did not get enough food to eat due to the pandemic. The proportion of households that went on several times without clean water for home use and access medicines/medical treatments were 50.52% and 52.22%, respectively. About 60.72% of the sampled households affirmed that, on several times, they did not have enough income due to the pandemic. At the same time, the share of households that suffered food insecurity due to the pandemic was 69.04%. Instrumenting for COVID-19 using distance to the affected communities, we find that a standard deviation increase in COVID-19 is associated with a rise of 0.232 and 0.289 standard deviations in poverty and food insecurity, respectively. Our results are robust to alternative estimation approaches to addressing the endogeneity of COVID-19 and other sensitivity checks. We conclude that Ghana would need to develop a new spectrum of gender- and location-sensitive policies that engender social inclusion as a conduit to expediate the attainment of zero poverty and hunger. Supplementary Information The online version contains supplementary material available at 10.1007/s11205-021-02766-9.

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“…Referring to the above practice, this article takes the mean value of manufacturing service as its instrumental variable. Secondly, by using the Lewbel method [ 61 , 62 ] for reference, this article constructs a new instrumental variable based on the heteroscedasticity identification method, which breaks through the limitation that traditional instrumental variable estimation must meet the exclusion constraints, and is more flexible in construction. It is not difficult to see from the estimation results that manufacturing servitization has an inverted U-shaped nonlinear effect on export technological sophistication, which is consistent with the benchmark result.…”

Section: Empirical Results and Analysismentioning

confidence: 99%

Research on the promoting effect of servitization on export technological sophistication of manufacturing enterprises

Sun

Jiang

et al. 2021

PLoS ONE

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Based on multiple micro databases involving Chinese manufacturing enterprises and World Input-Output Database, this article investigates the impact of China’s manufacturing servitization on export technological sophistication from 2000 to 2010. The results show that manufacturing servitization has an inverted U-shaped impact on export technological sophistication. From the perspective of heterogeneity at the enterprise level and industry level, manufacturing servitization has an inverted U-shaped impact on export technological sophistication for mixed trade enterprises, central and western located enterprises, domestic and foreign enterprises, and knowledge-intensive industries, the nonlinear impact is in the promotion range. Besides, manufacturing servitization with domestic and foreign service input source has an inverted U-shaped impact on export technological sophistication, manufacturing servitization with the domestic consumption-oriented service input source and foreign production-oriented service input source have a promoting effect. Servitization with financial industry and technical research and development service source has a promoting effect, while servitization with transportation service input source has an inverted U-shaped effect. Overall global value chain participation level and simple global value chain participation have a positive moderating effect on the impact, especially for enterprises with lower production efficiency. Mechanism analysis confirms that the "spillover" effect and "cost" effect are important channels for manufacturing servitization to promote export technological sophistication.

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Effects of Credit ‘Plus’ on Poverty Reduction in Ghana

Cited by 18 publications

References 43 publications

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Effect of COVID-19 on Household Food Insecurity and Poverty: Evidence from Ghana

Research on the promoting effect of servitization on export technological sophistication of manufacturing enterprises

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